F&A costs generally are budgeted and charged to federally-sponsored agreements on the basis of modified total direct costs (MTDC). This is the default basis used in the Proposal Budgeting Tool. MTDC includes:

• All personnel costs (salaries, wages, graduate student stipends)
• Employee Fringe benefits
• Supplies
• Services (including independent contractor services)
• Travel
• The first $25,000 of each sub-recipient agreement budget

MTDC excludes:

• Equipment (as defined in Equipment section above)
• Capital expenditures
• Charges for patient care
• Graduate tuition and health insurance fees
• Long-term rental costs of off-site facilities
• Scholarships and fellowships
• The portion of each sub-recipient agreement budget in excess of $25,000

Certain federal and other sponsors may also require the exclusion of selected cost categories (e.g., Participant Support) from the MTDC basis. In the case of Participant Support exclusion, use the MTDCN base.

Another common basis is Total Direct Costs (TDC). This basis is self-explanatory. However, one must carefully review sponsor regulations and solicitation guidelines to determine whether there are some exclusions. There may be other cost bases that would apply depending on sponsor regulations/requirements. In all cases where there is a deviation from the standard MTDC, MTDCN, or TDC basis, PIs/PDs must manually enter figures in the Proposal Budgeting Tool.